Abruptly Rent Increase Abruptly Rent Increase

4 months ago

I stay in Bangalore, first rental agreement was made on sep 2022 for 9500 rs and the terms and condition says on renewal of agreement 5% rent would be increased.
But new rental agreement was made in aug 2023 by 35% increased rent by violating old rental agreement to 13000rs.
Now the owner of the building sold entire building to nee party. New owner is demanding 15000 rs rent effective from immediately eventhough the old agreement made between old owner and me still valid and holds good. What should i do in this case ? What are my rights ?

Legal Counsel Vidhikarya

Responded 4 months ago

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A.Dear Client,
In India, the governing law for the control of rent, protection of the rights of landlords and the rights of tenants are governed by the Rent Control Act. A central Rent Control Act was passed by the legislature in 1948. It regulates the rules of letting out a property and ensures that neither the landlords nor the tenants’ rights are exploited by the other. It should also be noted that currently, each state has its own Rent Control Act, though largely similar to each other, they carry some minor differences. The Rent Control Act is established not only to protect the landlord and their property but also to protect the tenant. Under the Act, a tenant is entitled to fair rent to be agreed between the parties. The landlord when letting out a house cannot charge extraordinary amounts in rent. The valuation of a property for rent is to be dependent on the value of the property. If the tenant feels that the amount of rent that is being asked is too much compared to the value of the property, he/she may approach the court to seek redressal. Usually, the rent is to be between 8% and 10% of the value of the property, including all costs incurred via construction and fixtures on the property. So, in the prevailing scenario, on arbitrary violation of the terms of the rent agreement as well as the provision of the Rent Control Act that prescribes fair rent, by the landlord, you may file a complaint against the Landlord before the Rent Controller or Asst. Rent Controller appointed under the Rent Control Act by the State Govt. Reach out to an Advocate who might be well aware of the procedure for filing a complaint before the Rent Controller.
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Anik

Responded 4 months ago

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A.Dear Client,
If you have a signed registered agreement, it has a binding fixed term, then your landlord cannot evict you and/or increase the rent. But i think yours maybe a loose paper agreement that is unregistered, on a plain paper and indeterminately worded. In this case, the landlord can do what he likes. In this situation, it's important to first carefully review both your current and previous rental agreements. If the terms of the original agreement clearly state that the rent increase should be 5% upon renewal, and the new owner is attempting to impose a higher increase without proper notice or adherence to the existing agreement, you may have grounds to dispute the sudden jump in rent. Communicate with the new owner, providing a copy of the original agreement and highlighting the agreed-upon terms. If the issue persists, you may consider seeking legal advice to understand your rights and explore potential remedies. Document all communication and actions taken to protect your interests in case further legal action becomes necessary.
Thankyou
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